Reach Subsea ASA · OSL:REACH
Reach Subsea ASA — Q1 2024 Earnings Presentation
18 slides from Reach Subsea ASA's earnings presentation, May 8, 2024
Slide 1: Quarterly Consolidated Report Q1 2024
Q1 2024 Everything within Reach Quarterly Consolidated Report Sustainable access to ocean space Jostein Alendal, CEO | Birgitte Wendelbo Johansen, CFO | 08 May 2024 Reach Subsea | First Quarter Consolidated Report 2024
Slide 2: Disclaimer
1st Quarter 2024 2 Disclaimer IMPORTANT – You must read the following before The Information has been prepared by the Company's present and future business strategies This presentation contains statistics, data, continuing. The following applies to this document, Company, and no other party accepts
Slide 3: Reach Subsea kickstarting 2024 as anticipated
1st Quarter 2024 3 Reach Subsea kickstarting 2024 as anticipated NOK 575 million NOK 29 million NOK 1 300 million Revenue Q1 2024 EBIT Q1 2024 Order backlog +146%Y/Y +60%Y/Y A record 1Q in terms of activity level EBIT for 1Q2024 was NOK 28.7 million Strong outlook as evidenced by record and operatin
Slide 4: Complete provider of subsea services
1st Quarter 2024 4 Complete provider of subsea services IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry Engineering & Project Management Construction Support Inspection, maintenance & Asset integrity/Pipeline repair inspection Gas res
Slide 5: Serving strong customer base across sectors
1st Quarter 2024 5 Serving strong customer base across sectors Oil & Gas Offshore Wind Offshore Cables Emerging Sectors High global investment levels due Offshore fish farming, subsea to focus on energy security. Structural growth market as the Structural growth market mining, environmental Ageing i
Slide 6: Vessel capacity for long-term growth
1st Quarter 2024 6 Vessel capacity for long-term growth Strong order backlog in start of 2024* *Does not include options and expected call- off extensions under frame agreements Order backlog +60% 1300 1200 815 740 690 590 440 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Outstanding tende
Slide 7: Global Expansion, Technology development and Remote Services
1st Quarter 2024 7 Global Expansion, Technology development and Remote Services Sustainable access to ocean space Haugesund, Bergen, Oslo Aberdeen Houston Trinidad & Tobago Singapore Rio Perth Reducing emissions with 90% Eliminate and Reduce Human Risk Reducing CAPEX/OPEX Reach Subsea | First Quarte
Slide 8: The three organic growth levers
1st Quarter 2024 8 The three organic growth levers IMR, ROV, survey, construction support and decommissioning services within the renewable and oil and gas industry Grow number of spreads Increase service scope on spreads Roll out Reach Remote • Currently operating 7 (up to 8 during Q2 2024) • Rough
Slide 9: Financials
1st Quarter 2024 9 Financials Reach Subsea | First Quarter Consolidated Report 2024
Slide 10: Q1 2024 Highlights
1st Quarter 2024 10 Q1 2024 Highlights • Strong Q1 quarter leveraged by global operations • Q1 revenue at NOK 575 million • Order backlog increased to NOK 1.3 billion Revenue NOK 575 million (NOK 234 million), + 146 % EBIT NOK 29 million (NOK -8 million) Pre-tax profit NOK -9 million (NOK 6 million)
Slide 11: Revenue and profits raised to record levels
1st Quarter 2024 11 Revenue and profits raised to record levels Revenue increased 227 percent* last 24 months Rolling 12-month Revenue (MNOK) Rolling 12-month EBIT and Pre-tax profit (MNOK) 2500 400 2250 350 2000 300 1750 250 1500 200 1250 150 1000 100 750 50 500 0 250 -50 0 -100 2018 2019 2020 2021
Slide 12: Q1 2024 Key developments
1st Quarter 2024 12 Q1 2024 Key developments Revenue increased 227 percent* last 24 months Revenue mix by sector Revenue mix by segment Revenue mix by geography +146% +146% +146% • 146 percent revenue 575 increase for the quarter 575 575 58 driven by • Increased number 210 274 of project days 309 •
Slide 13: Positioned for growth
1st Quarter 2024 14 Positioned for growth Solid financial position (MNOK) • Strong liquidity and equity 928 938 positions • Well-positioned for remaining investments in Reach Remote and mobilizations and equipment for the coming year 579 331 350 287 257 210 207 160 130 68 79 70 40 31 28 26 2019 2020
Slide 14: Strong growth in vessel capacity and high utilization
1st Quarter 2024 14 Strong growth in vessel capacity and high utilization ROV days sold and % utilization Vessel days sold and % utilization 932 550 910 861 517 846 806 481 793 766 444 690 660 659 363 348 567 317 306 287 248 218 96% 97% 99% 88% 95% 100% 92% 78% 77% 84% 91% 93% 90% 67% 71% 71% 71% 69
Slide 15: Progress on ESG targets
1st Quarter 2024 15 Progress on ESG targets Environment Social Governance Increase activity CO2 footprint below Lost time incidents Zero work-related 90% completion of 90% completion of within non –Oil & Gas NSA relevant emission (LTI) 0% injuries (LTI) cyber security Code of Conduct and segment tar
Slide 16: Summary
1st Quarter 2024 16 Summary Reach Subsea | First Quarter Consolidated Report 2024
Slide 17: Positioned for continued growth and value creation
1st Quarter 2024 17 Positioned for continued growth and value creation 1 ATTRACTIVE MARKET OUTLOOK High investments in oil & gas and renewable energy set to continue for years 2 POSITIONED FOR FURTHER GROWTH Expanded service offering, expanded long-term vessel capacity, growing global footprint 3 HI
Slide 18: 1st Quarter 2024 Q&A
1st Quarter 2024 18 Q&A Reach Subsea | First Quarter Consolidated Report 2024